Oasis to acquire Williston basin assets from Diamondback for $745 million

Oasis Petroleum Inc., Houston, agreed to acquire Williston basin assets from Diamondback Energy in a cash transaction valued at $745 million.

Assets purchased include some 27,000 boe/d of production in first-quarter 2021 on a two-stream basis and 95,000 net acres.

Diamondback acquired Williston basin assets in its merger with QEP Resources announced in December 2020 and closed in March 2021 (OGJ Online, Dec. 23, 2020). Upon closing of the deal with Oasis—expected in July subject to closing conditions—Diamondback will exit Williston basin.

Oasis, in its May 3 release noting the deal and first quarter results, said the deal lowers exploration and production cash G&A exit rate guidance to $1.25-1.35/boe from $1.60/boe prior to the transaction and provides opportunities for additional capital and operating cost savings.

First-quarter 2021 production for Oasis was 57,200 boe/d. The company raised its full-year guidance to 67,500-71,000 boe/d from its prior outlook of 57,000-60,000 boe/d.

Full year capital spending for exploration and production was increased to $230-245 million from $225-235 million (OGJ Online, Feb. 25, 2021). Full year 2021 capital spending was reaffirmed at $1.6-1.75 billion. Drilling and completion capital is expected on the acquired assets in 2022.

Full-year net production guidance was increased to 350,000-360,000 boe/d from 308,000-325,000 boe/d